MGT of Compensation Chapter 5

The final result of the job analysis-job description-job evaluation process is a _____.

hierarchy of work

Classification (advantages of common job evaluation methods)

A wide range of work can be grouped together in a single system.

Flexible and balanced guidelines are necessary to ensure efficient job evaluation.

True (required to ensure that employees are treated fairly and that pay decisions help an organization achieve its objectives)

Identify an advantage of developing a job evaluation plan using benchmark jobs.

It helps to ensure the accuracy of the decisions based on the job evaluation.

While using the classification method of job evaluation, greater specificity of the class definition results in _____.

a more reliable evaluation

Tradition does not influence whether or not the compensable factors used to slot jobs into the pay structure are accepted.

False (Acceptance of the compensable factors used to slot jobs into the pay structure may depend, at least in part, on tradition.)

How does job evaluation support the work flow in an organization?

-By integrating each job's pay with its relative contributions to the organization -By setting pay for new, unique, or changing jobs

Identify the generic groups into which the compensable factors used in existing, standardized point plans usually fall.

-Responsibility -Skills required -Working conditions -Effort required

Which of the following are true of the perspective of individuals who make pay decisions based on job evaluation?

-They believe that job evaluation allows the exchange of views. -They view job evaluation as a method that helps pay differences among jobs get accepted.

Problem solving (dimensions included in the universal compensable factors employed by the Hay Group method)

Environment and challenge

Paired comparison (ways to ranking while evaluating jobs)

Evaluators use a matrix to compare every possible coupling of jobs.

Which of the following job evaluation methods arranges job descriptions from highest to lowest according to a universal definition of relative value or contribution to the organization's success?

Ranking

After the determination of factor weights by an advisory committee, the committee members recommend the ____ ____ ____, that is, a pay structure they wish to duplicate with the point plan.

criterion pay structure

What is the outcome of using the classification method of job evaluation?

A job structure with a sequence of classes, each having a number of similar jobs

According to research, which of the following is likely to bring about commitment from employees and the management and acceptance of the internal pay structure?

Attending to the fairness of the design process

Which job evaluation approach is most commonly used in the United States and Europe?

Point plans

What is the advantage of using existing, standardized point plans?

The relative internal value of jobs in an organization can be compared with similar jobs in other organizations.

In the ____ method of job evaluation, a series of well-described classes covers the range of jobs in an organization, and a job description is compared to the class descriptions to decide which class is the best fit for that job.

classification

Characteristics in the work that the organization values, and those that help it pursue its strategy and achieve its objectives are called ____ _____

compensable factors

Job evaluation supports an organization's strategy by _____.

identifying the way in which the job adds value

The compensable factors used to determine an organization's internal pay structure should be acceptable to _____.

the stakeholders

The compensable factors used in the designing of a point plan are based on _____.

the strategic direction of business and the way in which the work contributes to the strategy

Identify the aspects of job content whose values depend on their relationship to market wages.

-Skills required -Customer contacts

Krypton Tech Inc., a technology company, produces high-end gadgets by studying global trends in customer demands and working closely with suppliers. Identify an important compensable factor for this company.

Product innovation

Problem solving (universal compensable factors employed by the Hay Group method)

The measure of the inherent characteristics and complexity of the issues and challenges faced by the job

Accountability (universal compensable factors employed by the Hay Group method)

The measured effect that the job is designed to have on the organization's success

Know-how (universal compensable factors employed by the Hay Group method)

The sum total of all the facts, information, and skill needed to do the job competently, irrespective of the way in which they are acquired

What is the challenge called small numbers that is faced while deciding the number of compensable factors to be used while designing a point plan?

The tendency to use a factor present in even a single job in the benchmark sample for the entire work domain

Identify a true statement about the appeals or review procedures for handling cases of incorrect job evaluation or employee grievances about internal pay structure.

They usually require approval by higher levels of management on completion.

Why is a manual prepared after a job evaluation point plan is designed?

To permit users who were not involved in the plan's development to apply the plan as its developers intended

Ranking (drawbacks of common job evaluation methods)

It becomes cumbersome as the number of jobs increases.

Identify a true statement about involvement in the design of an organization's internal structure.

Committees, task forces, or teams that include representatives from key operating functions are often involved.

Identify some of the important decisions involved in job evaluation.

-Establishing the purpose(s) -Choosing among alternative methods -Evaluating the usefulness of the results -Deciding on single versus multiple plans -Obtaining involvement of relevant stakeholders

Which of the following would be considered a measure of success of the training provided to users to help them apply a point plan?

High (inter)rater reliability

Identify a common example of a characteristic that is usually present in a limited number of jobs but is made into a compensable factor and applied to all jobs.

Unpleasant working conditions

As part of the job evaluation process, a company identifies skill as one of the compensable factors and allocates 45 percent of the total value of factors to it. Skill has three subfactors, namely specialized knowledge, planning skills, and communication skills, with five degrees each. An employee receives five degrees of knowledge, four degrees of planning, and three degrees of communication during her job evaluation. The total number of points that the employee receives for skill is _____.

180

Point (advantages of common job evaluation methods)

The basis for comparisons is determined by compensable factors.

Organizations commonly use an established approach to derive a single internal structure that can be applied to different functional groups or units.

False (commonly have multiple internal structures derived through multiple approaches that apply to different functional groups or units)

Alternation ranking (ways to ranking while evaluating jobs)

Evaluators reach a consensus on which jobs are the most and least valuable, followed by the next most and least valued, and so on, until all the jobs have been arranged in order.

Union representatives who actively participate in the design of internal structure believe that collective bargaining yields more equitable results.

False (Some union leaders believe that philosophical differences prevent their active participation in the design of internal structure. They believe that collective bargaining yields more equitable results.)

Job content is the sole basis for pay.

False (The job's exchange value may also play a role in determining pay.)

Internal alignment based on content (features of this type of internal structure alignment)

It organizes jobs based on the required skills and the associated duties and responsibilities.

Identify a true statement about the factor scales constructed in the point method of job evaluation.

Most factor scales consist of four to eight degrees.

Which of the following is a consequence of differences in compensable factors being based on the work itself?

The chances of accusations of pay discrimination being raised are reduced.

Even organizations that rely primarily on market pricing probably also use job evaluation because _____.

matching all jobs to market survey jobs directly is usually impossible

The statistical approach used to determine the weight for each factor and the factor scales that will reproduce, as closely as possible, the chosen criterion pay structure is often labeled ____ ____ to differentiate it from the committee a priori judgment approach.

policy capturing

A drawback of the ranking method of job evaluation is that evaluators using this method must _____.

be knowledgeable about all jobs under study

Identify the criteria that have been suggested for scaling compensable factors in the point method of job evaluation.

-Ensure that the number of degrees is necessary to distinguish among jobs -Make it apparent how the degree applies to the job -Anchor degree definitions with benchmark-job titles and/or work behaviors -Use understandable terminology

Ranking (advantages of common job evaluation methods)

It is quick, simple, and easy to explain.

Identify an advantage of the ranking method of job evaluation.

It is the least expensive method of job evaluation, at least initially.

Internal alignment based on value (features of this type of internal structure alignment)

It organizes jobs based on the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals.

In a survey of approximately 1,000 members of WorldatWork, _____ was selected by the majority as the primary method of job evaluation.

market pricing

Why is it important to maintain some documentation to support the choice of compensable factors while developing a point plan?

-It is easier to understand. -It can withstand a variety of challenges to the pay structure. -It helps gain acceptance by employees and managers.

Identify the functions that a job evaluation must perform.

-It should be fair to employees. -It should support organization strategy and work flow. -It should encourage behavior that supports organization objectives.

Identify the characteristics of a benchmark job.

-Its contents are well known and relatively stable over time. -It employs a reasonable proportion of the work force.

Identify the factors that combine to form the basis for job evaluation.

-Organizational culture -The external market -Value to the organization -Skills required -Job content

Which of the following characteristics must compensable factors possess if they are to be useful?

-They should be based on the work performed. -They should be acceptable to the stakeholders affected by the resulting pay structure. -They should be based on the strategy and values of the organization.

Identify the compensable factors employed by the Hay Group Guide Chart—Profile Method of job evaluation.

-know-how -problem solving -accountability

In the context of designing a point plan, arrange the steps that are followed after job analysis in the order in which they occur.

1. Determining compensable factors 2. Scaling compensable factors 3. Weighing compensable factors according to importance 4. Selecting criterion pay structure 5. Communicating the plan and training users 6. Applying the plan to nonbenchmark jobs and developing online software support

Arrange the steps involved in the determination of an internally aligned job structure in the order in which they occur.

1. Job Analysis 2. Job Description 3. Job Evaluation

Which method of job evaluation has compensable factors whose degrees are numerically scaled and whose relative importance is weighed in the determination of job structure?

Point method

Which of the following terms refers to the criteria used for evaluating jobs in the point method?

Compensable factors

Identify a possible drawback of wage-setting practices today.

Complex procedures and creeping bureaucracy can cause users to lose sight of the objectives of job evaluation.

In the point method of job evaluation, which of the following steps immediately follows the determination of compensable factors?

Construction of scales reflecting the different degrees within each factor

The business strategy of Orient Inc., a clothing company, involves delighting customers by selling clothes at prices lower than those of their competitors. Which of the following would be an important compensable factor for this company?

Cost containment

Identify a drawback of the ranking method of job evaluation.

Evaluations are subjective opinions that cannot be rationalized in work-related and strategic terms.

Accountability (dimensions included in the universal compensable factors employed by the Hay Group method)

Freedom to act and impact

Identify a true statement about the application of a point plan to nonbenchmark jobs.

It can be done by people who were not necessarily involved in the design process.

Point (drawbacks of common job evaluation methods)

It can become bureaucratic and bound by regulations.

Classification (drawbacks of common job evaluation methods)

It can leave excessive room for manipulation.

____ ____ is the process of systematically determining the relative worth of jobs to create a job structure for the organization.

Job evaluation

Identify the types of jobs for which early point plans, such as the National Metal Trades Association (NMTA) plan and the National Electrical Manufacturers Association (NEMA) plan, were developed.

Manufacturing jobs Office jobs

Flexible and balanced guidelines are necessary to ensure efficient job evaluation.

True (Balanced guidelines for job evaluation are required to ensure that employees are treated fairly and that pay decisions help an organization achieve its objectives.)

Job content does not have intrinsic value if its value depends on what it can command in the external market.

True (If some aspect of job content, such as stressful working conditions, is unrelated to wages paid in the external labor market, then that aspect does not have to be included in the job evaluation. In this perspective, the value of job content is based on what it can command in the external market and has no intrinsic value.)

The last step in the point method of job evaluation is the _____.

application of the plan to nonbenchmark jobs

An organization may use a sample of _____, or key jobs, to ensure that a job evaluation includes all relevant aspects of work.

benchmark jobs

In the point method of job evaluation, different factor weights indicate differences in _____.

importance attached to each factor by the employer

The first step in designing a point plan is _____.

job analysis

Some researchers believe that job evaluation can be judged according to technical standards if it can be made sufficiently _____.

numerical

In the point method of job evaluation, defining, scaling, and weighting the compensable factors is based on _____.

the content of benchmark jobs